Factory sector strengthens in Oct. (ISM to 55.7)

[Roland99]

Source: MarketWatch

The nation's manufacturing firms grew at the fastest pace in more than three years in October, according to a closely followed survey of top executives released Monday.

The Institute for Supply Management index rose to 55.7% from 52.6% in September, well above the 53.0% expected by economists surveyed by MarketWatch. See Economic Calendar.

It's the highest reading since April 2006. The production gauge also rose to a three-year high.

...

ISM officials said that manufacturers have stopped slashing inventories.

Read more: http://www.marketwatch.com/story/factory-sector-surges-in-october-ism-says-2009-11-02

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So, instead of cutting production to lower inventory, they're back to near-regular production? In the hopes of what? Exporting more product with the dollar tanking? Readying for the holiday season?

I'm not holding my breath that this means more jobs will come about.

[Dawgs]

1. Not surprised that a DUer would comment on good news with skepticism.

:shrug:

[Roland99]

2. Did I miss an employment report that wasn't -500,000?

Didn't think so.

A healthy dose of critical thinking must always be applied to any economic report.

If you want rah-rah, rewind your clock a few years and tune in Fox.

[Dawgs]

7. Where did I suggest you "rah-rah" this report?

I didn't think so.

[Roland99]

9. You tossed out a critical statement, almost an ad hominem

Your post implied that I (and all of DU) should take this news and be happy! Be joyful!


If that was not your intention, then feel free to explain exactly what you meant.

[Dreamer Tatum]

3. Hey, brainiac

The dollar tanking could very well be DRIVING the factory sector.

Weak dollar ~ American good cheaper to foreigners ~ foreigners demand more American stuff ~ factories produce more stuff.

[Roland99]

4. Uhh....yeah. That's what I just said. Let me repeat....

"Exporting more product with the dollar tanking?"


BTW, if you think the dollar tanking is a GOOD thing, read this:

Roubini: The New Dollar Carry-Trade Is A Disaster In The Making
http://www.businessinsider.com/roubini-the-new-dollar-carry-trade-is-bound-to-blow-up-2009-11

[Dreamer Tatum]

5. My apologies. However...

...at this stage in the game, I am fine with a weak dollar, as there is plenty of room to sop up inflationary pressures when thingss really start to turn around.

[Roland99]

6. I'm hopeful about that but not as optimistic.

Hopeful in that this time next year I will be in the market for a house (I've said this a few times before but things have unfortunately delayed my plans, including another bout of unemployment and relocating to a new state).

But, I fear that rates will shoot up too quickly in the next 12-24 months or so and cause more damage to the economy. How much longer can free money be available to the central banks (without them lending to small business and individuals but, rather, even jacking up their credit card rates to usury levels?)

I wish the Bush and Obama administrations had let the Too Big to Fail actually fail. It would have been less costly to us, fuck the wealthy execs running the damn things.

[Ikonoklast]

8. Sooner or later, materials must be replaced.

If you are a manufacturer, you can run lean inventory, but you better not run out and stall production.

Inventory replenishment coupled with better prospects than just six months ago.